Earnings Per Share

3 Months Ended

Dec. 31, 2022

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data):


	Three Months Ended
	December 31, 2022		January 1, 2022
Numerator:
Net income	$	320	$	1,126
Less: Net income attributable to noncontrolling interests	4		5
Net income attributable to Tyson	316		1,121
Less dividends declared:
Class A	143		140
Class B	32		30
Undistributed earnings	$	141	$	951

Class A undistributed earnings	$	116	$	782
Class B undistributed earnings	25		169
Total undistributed earnings	$	141	$	951

Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	286		292
Class B weighted average shares, and shares under the if-converted method for diluted earnings per share	70		70
Effect of dilutive securities:
Stock options, restricted stock and performance units	2		3

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	358		365





Net income per share attributable to Tyson:
Class A basic	$	0.91	$	3.16
Class B basic	$	0.81	$	2.84
Diluted	$	0.88	$	3.07
Dividends Declared Per Share:
Class A	$	0.500	$	0.475
Class B	$	0.450	$	0.428

Approximately 4 million and 2 million of our stock-based compensation shares were antidilutive for the three months ended December 31, 2022 and January 1, 2022, respectively. These shares were not included in the diluted earnings per share calculation.

We have two classes of capital stock, Class A stock and Class B stock. Cash dividends cannot be paid to holders of Class B stock unless they are simultaneously paid to holders of Class A stock. The per share amount of cash dividends paid to holders of Class B stock cannot exceed 90% of the cash dividends paid to holders of Class A stock.

We allocate undistributed earnings based upon a 1.0 to 0.9 ratio per share to Class A stock and Class B stock, respectively. We allocate undistributed earnings based on this ratio due to historical dividend patterns, voting control of Class B shareholders and contractual limitations of dividends to Class B stock.